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Global Pension Finance Watch: Third quarter 2019

Declining discount rates over Q3

Investments
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October 28, 2019

The U.K. pension index experienced a decrease of 6.8% over the third quarter, the highest decrease globally followed by the Eurozone.

Declining discount rates drove the liability value up in most regions over the third quarter. The negative impact was partially offset by favorable investment returns in all global regions. The overall impact of these changes resulted in negative pension index returns over Q3 in all regions with the exception of Brazil and Japan.

About this report

Global Pension Finance Watch, published quarterly, reviews how capital market performance affects defined benefit pension plan financing in major retirement markets worldwide, with a focus on linked asset/liability results. We cover defined benefit pension plans in Brazil, Canada, the Eurozone, Japan, Switzerland, the U.K. and the U.S. Specific plan results will vary based on such factors as liability characteristics, contribution policy, portfolio composition and management strategy.

The impact of capital markets on these pension plans is twofold:

  • Investment performance on fund assets
  • Changes in economic assumptions on plan liabilities (as measured under international accounting standards)

If you have questions or comments about this report, please contact our Willis Towers Watson experts.

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